Managing Project Risk at the Enterprise Level: Exploratory Case Studies in China

Abstract

Risk management is a critical part of construction project management. Most previous studies on construction project risk management (PRM) have focused on the project level rather than the enterprise level. The objective of this study is to explore the role that enterprise-level risk management (ERM) plays in PRM. A case study approach was adopted in which two Chinese international construction firms with different risk management practices and performance were investigated. Data were collected from face-to-face interviews and archival documents. The results indicate that ERM can improve the ability and performance of PRM through controlling project risk at the enterprise level, which is based on four key components: risk management department, risk management procedure, external service, and corporate culture. Both senior management and academics will find the study useful because it improves the understanding of how ERM can influence PRM, with a view to stimulating further research.